Learn how IMPLAN builds Europe Subnational Regions from Eurostat FIGARO tables and regional statistics for E.U. and U.K. regions.
INTRODUCTION
IMPLAN Europe Subnational Regions provides input-output (I-O) models for European Union (E.U.) member countries and the United Kingdom (U.K.) at three regional levels, plus national-level models for four additional countries. Regions in the E.U. use the Nomenclature of territorial units for statistics (NUTS) geographical classification system, while regions in the U.K. use the International Territorial Level (ITL) geographical classification system.
The three regional levels are Major Regions (NUTS1/ITL1), Sub-Regions (NUTS2/ITL2), and Local Regions (NUTS3/ITL3). Regional levels are hierarchical: Level 3 regions sum up to form Level 2 regions, Level 2 regions sum up to form Level 1 regions, and Level 1 regions sum up to the national level.
This article describes the raw data sources and methods used to produce IMPLAN Europe Subnational Regions. Any changes in data sources or methods, and the geographic classification used for regional estimates, are listed in each release's release notes.
NATIONAL-LEVEL DATA
The foundational structure comes from Eurostat's FIGARO tables, a globally consistent set of inter-country input-output (I-O) tables covering E.U. member countries and their main trading partners. For each country, FIGARO provides a transactions matrix, Output and Value Added by Industry, Final Demand by Commodity and Institution, and country-to-country trade. All values are presented in euros (€) and are valued in Basic Prices.
FINAL DEMAND
To support economic impact modeling, IMPLAN adjusts FIGARO's Household Final Demand from the domestic concept to the national concept.
- Domestic concept: all household spending that happens inside a country, including by tourists and other non-residents.
- National concept: spending by a country's residents, wherever it occurs.
This way, household spending in the model follows the income earned by the people who live there. Spending by residents abroad is treated as foreign imports.
EMPLOYMENT
For most countries, employment data come from Eurostat's national statistics on employment by industry. Countries that are not covered by Eurostat use the Organisation for Economic Co-operation and Development (OECD) equivalent annual employment-by-industry statistics.
Countries report employment either as jobs or as persons. Because IMPLAN Employment is a count of jobs, persons are converted to jobs for countries that report persons, using the average jobs-per-person ratio by industry observed in countries that report both.
Due to data limitations, proprietors are not reported separately from wage and salary employees; likewise, proprietor income is not reported separately from the other components of Gross Operating Surplus.
TAXES
For most countries, personal income taxes, corporate taxes, and social insurance contributions come from Eurostat's national accounts tax aggregates. Countries that are not covered by Eurostat, or for which current data are unavailable, use the OECD's government revenue statistics, either as reported amounts (for countries that report in euros) or estimated as a percentage of GDP.
For a limited number of countries (Serbia and Montenegro), IMPLAN supplements tax and transfer data with World Bank development indicators and the International Monetary Fund (IMF) government finance statistics.
REGIONAL-LEVEL DATA
Regional data come from Eurostat (for E.U. member countries) and the Office for National Statistics (ONS) (for the U.K.). IMPLAN obtains regional population, land area, Employment, Gross Value Added by Industry, and Employee Compensation by Industry, among other data elements, from these sources.
| Data element | Most detailed level published |
|---|---|
| Employment | NUTS3/ITL3 |
| Gross Value Added by Industry | NUTS3/ITL3 |
| Employee Compensation by Industry | NUTS2/ITL2 |
Employee Compensation by Industry at the NUTS3/ITL3 level is estimated from the parent region's (NUTS2/ITL2) Employee Compensation per Employment and estimates of NUTS3/ITL3 Employment.
The published data have two limitations: (1) some values are suppressed to protect confidentiality and (2) industry detail differs from the national-level industry scheme. IMPLAN estimates the suppressed values, adds industry detail to match the national-level industry scheme, and scales the regional estimates so that they sum to the corresponding national values.
INDUSTRY DETAIL IN E.U. REGIONS
For E.U. countries, industry detail is limited, and detail is added using the national industry mix within each broad industry reported at the regional level. For example, if the Telecommunications sector is 20% of the broader Information and communication sector nationally, it is assumed to account for 20% of that sector in each region within the country. This assumes that each region's industry mix within a broad sector matches the national mix.
INDUSTRY DETAIL IN U.K. REGIONS
For the U.K., IMPLAN splits total employment by ITL region into industries using regional industry employment ratios. For most regions, these come from the ONS's annual Business Register and Employment Survey (BRES), which covers employee jobs and some working proprietors. Because the survey excludes or under-covers most self-employment, this method assumes that the industry mix of self-employed workers matches the survey mix. As a result, U.K. regions get their own industry mix, whereas E.U. regions inherit the national mix.
Note
Northern Ireland is not covered by the detailed BRES data and relies on separate data and methods to add industry detail. This includes using industry splits for a more aggregated geography (ITL1 Northern Ireland) and a more aggregated sectoring scheme. As for regions in the E.U., national-level industry splits are used to split the more aggregated sectoring scheme into the necessary detail.
DERIVING THE REGIONAL ACCOUNTS
Using these sources and methods, IMPLAN derives regional Employment, Employee Compensation, and Gross Value Added for each Industry, at the same level of industry detail as the national I-O tables, controlled to national totals.
- Output is estimated as Gross Value Added plus regional Intermediate Inputs, which are derived from national Intermediate Inputs per job and regional employment.
- Gross Operating Surplus and Other Taxes on Production Net of Subsidies are derived by splitting the remainder of Gross Value Added less Employee Compensation using national-level proportions.
- Intermediate Inputs are adjusted, if needed, so that each Industry's production is balanced and regional Employee Compensation and Gross Value Added are preserved.
All other data elements, such as Final Demand and Transfers, are distributed from national values to regions using proxies such as household counts, total regional employment, or population.
TRADE AND COMMUTING
Foreign commodity trade is estimated using national-level trade rates. Domestic inter-regional trade is estimated based on each region's supplies and demands for each commodity. Commuting flows are not accounted for.
GLOBAL REMAINDER
The Global Remainder aggregates all countries not individually covered, including FIGARO's Rest of World geography. Including it lets users capture the global impacts of Events in any of the covered countries or regions.